Adrian, state iron out cost of training school land

ADRIAN — The numbers are back for the potential sale of the former Michigan State Police post and Adrian Training School.

In seeking to sell the 58-acre property purchased from the state of Michigan in 2011 for $1, the city of Adrian will most likely have to ante up at least $100,000 of its own money.

The plan is to have PlaneWave Holdings LLC, a telescope manufacturer interested in buying the former Adrian Training School campus to consolidate its Deerfield and California operations, buy the land from the city. This could mean new manufacturing jobs and other potential investments coming to Adrian.

The city has owned the site for years with no use of it until in the past two years when the Adrian Center for the Arts found a home there.

In Monday’s premeeting, city administrator Shane Horn gave the city commission an update on discussions he, Mayor Chuck Jacobson and city staff have had with the state’s land management division.

Horn said after seeing the initial appraisal, they were blown away and not in a good way. He said they exchanged offers with the state and now have reached new values more to both parties’ liking.

Horn said in the beginning, the state put the site’s value at $385,000 for the former MSP post and $150,000 for the training school. He said after further discussions, the city negotiated those numbers down to $167,000 and 135,000, respectively.

“So we’re looking at just over $300,000 to $302,000 to acquire both parcels,” Horn said.

He said the city does have a purchase agreement in place with PlaneWave that would have the firm acquiring both properties from the city for $200,000.

“So this would require an incentive of just over $100,000 for the city to move this project forward,” Horn said.

When this development idea popped up late in 2017, Horn said the deal with the state had a deed restriction requiring the land be used for a “public purpose.”

He said then, “The reason the ‘public purpose’ restriction is on the deed is because we did not pay fair market value in 2011.”

To address that, the state hired an appraisal company to set the property’s fair market value.

“By paying fair market value we can proceed to develop the campus for the best economic benefit,” Horn said in a Dec. 31 article of The Daily Telegram. “I expect to receive this appraisal any day and this number would be part of our negotiations with the developer.”

“Obviously, we are very excited about PlaneWave and their development, and their ideas for that campus, and the partnerships they want to continue to form with the ACA folks,” he said Monday.

Horn said he believes it’s time to move this forward and supports the deal knowing the city will recoup its investment in taxes in the near future.

“Personally, I think it’s time to sign on the dotted line. Let’s move this thing forward,” he said. “I think we’re at a point where we’ve got a number I think I can get behind and I think you hopefully can get behind.”

The investment, Horn said, will be another city incentive being offered to PlaneWave, which has a proposed 12-year PA 198 Industrial Facilities Tax Abatement that is expected to reduce PlaneWave’s property taxes by 50 percent in the first 12 years and then see that increase in year 13.

Even with the 12-year tax break, he said the city expects a payback fairly quickly on the investment since the city has never seen any taxes from the property since it bought it. In addition, Horn said in addition, the city would save the $15,000 to $20,000 it pays annually on maintenance of the property.

Commissioner Lad Strayer’s response to Horn, in support of offering the incentive, was, “Full speed ahead.”

Kirk Valentine, who was recently appointed to the commission, said he’s new to these recent discussions and supports PlaneWave’s investment. However, he said he wondered about the tax revenues the city eventually could receive and how they are split up and go to different parties, such as the public schools, Lenawee County and the Department of Aging. In a rhetorical sense, he asked, how much would those other taxing agencies put up to help the city with this investment.

“I just want a thank you card,” Valentine said lightheartedly about those other taxing agencies.

Commissioner Brad Watson said the city should move forward and he does see it as a quick payback on an important investment.

In issuing his support, commissioner Allen Heldt said it’s a huge thing that a great manufacturing business wants to come to Adrian.

In closing, Horn said he was going to connect with the state and PlaneWave about the proposed plan.

If things move forward as planned, Horn said the city commission will need to have a special meeting at 7 p.m. Monday, Feb. 12, to make things official.

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